In earnest, Prime Day is actually two days as it spans across July 12 and July 13, first introduced back in 2005. After the first 13 years of its existence, it reached 100 million users, and after three more years, it grew to 200 million members. Meanwhile, the sales event has been a success for the firm, so expecting it to continue in the same vein would not be a stretch. However, despite the buzz around the event, which is this year smaller than usual, AMZN closed in the red by 2.26% on July 12.
AMZN chart and analysis
Further, the company shares are nowadays trading at 68.2 times its 12-month forward earnings, well off of its five-year peak of $171.8; yet, it would be difficult to call the stock of the company cheap. Currently, the price of the stock is $109.22, and with a double bottom seen on the daily chart, the possible support lines could be around $108.69 as well as between the $105.37 and $106.22 levels. On the other hand, if the stock rallies, possible resistance lines could stretch between $109.80 and $113.99 levels, moves above could see the stock rally to $116.46, the next resistance. In the end, whether the stock is cheap could depend on how the company balances consumer weakness in their cloud business, as notable investment firms stated. Inflation, labor market tightness, and supply chain issues play a role when analyzing the company and deciding to invest or stick to the sidelines for now. Buy stocks now with Interactive Broker – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
